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  1. #21  
    Senior Member txradioguy's Avatar
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    *sigh* one more time for the slow learners:


    What Are the Disadvantages of the Gold Standard?:

    One disadvantage of a gold standard that the size and health of a country's economy is dependent upon its supply of gold, not the resourcefulness of its people and businesses. Countries without any gold are at a competitive disadvantage.

    However, this is an advantage to the U.S., which is the world's second largest gold mining country behind South Africa. Most U.S. gold mining occurs on federally owned lands in twelve western states, with Nevada being the primary source. Australia, Canada and many developing countries also are major gold producers. (Source: National Mining Association)

    The gold standard causes countries to become obsessed with keeping their gold, rather than improving the business climate. For example, during the Great Depression, the Federal Reserve raised interest rates to make dollars more valuable and prevent people from demanding gold. However, the Fed should have been lowering rates to stimulate the economy. (Source: Econlib, The Great Depression)

    Government actions to protect their gold reserves caused large fluctuations in the economy. In fact, between 1890 and 1905, when the U.S. was on the gold standard, the economy suffered five major recessions for this reason. (Source: Federal Reserve, Remarks by Governor Edward M. Gramlich,, 24th Annual Conference of the Eastern Economic Association, February 27, 1998)

    How Would a Return to the Gold Standard Affect the U.S. Economy?:

    How a return to the gold standard would affect the U.S. economy depends on which gold standard method is proposed, and how it is implemented. For a detailed description of some of these methods, see The Cato Institute, The Gold Standard: An Analysis of some Recent Proposals.)

    Returning to a gold standard, however it is done, would constrict the government's ability to manage the economy. The Fed would not longer be able to reduce the money supply by raising interest rates in times of inflation, or increase money supply by lower them in times of recession. In other words, the money supply would have to remain constant. In fact, this is why many advocate a return to the gold standard. It would enforce fiscal discipline, a balanced budget, and limit government intervention.

    However, a fixed money supply, dependent on gold reserves, would limit economic growth. Many businesses would not get funded for lack of capital.

    The U.S. could not unilaterally convert to a gold standard if the rest of the world didn't. If it did, everyone in the world could demand that the U.S. replace their dollars with gold.

    The U.S. does not even have enough gold, at current rates, to pay off the portion of its debt owed to foreign investors. For example, China, Japan and other countries own $3.2 trillion in U.S. Treasury debt - but there is only $223 billion (at $914 per ounce) total in gold reserves at Fort Knox. (Source: U.S. Treasury Major Foreign Holdings of U.S. Debt; Office of Inspector General, Audit Report, November 2007)

    Today, the U.S. economy is an important partner in an integrated global economy. Central banks work closely together throughout the world to manage monetary policy. The U.S. could not unilaterally adopt an isolationist economic stance, and abandon its ability to manage its economy using monetary policy, by returning to a gold standard.

    http://useconomy.about.com/od/moneta...d_standard.htm
    In Memory Of My Friend 1st Sgt. Tim Millsap A Co, 70th Eng. Bn. 3rd Bde 1st AD...K.I.A. 25 April 2005

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  2. #22  
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    Quote Originally Posted by txradioguy View Post
    *sigh* one more time for the slow learners:What Are the Disadvantages of the Gold Standard?:
    And, yet again, Captain Irrelevant manages to cut-and-paste a great deal of Economic verbiage which he 1.) Doesn't actually understand; and 2.) Couldn't effectively defend, if his bluff were called.

    Which it's unnecessary to do, since THIS ARTICLE HAS NOTHING TO DO WITH THE GOLD STANDARD, which neither Dr. North, nor I, support anyway.

    Dr. North is a supporter of Free Market Money, not the Gold Standard.
    I am likewise a supporter of Free Market Money, not the Gold Standard.
    And abolishing the Federal Reserve would NOT return us to the Gold Standard, but rather return us to Free Market Money.

    You did not understand this, because you do not understand Economics.

    In fact, if you actually thought that this Article had ANYTHING to do with the Gold Standard, to the point of posting an entire screed on the subject, then it's patently obvious that you know ABSOLUTELY NOTHING about Economics, at all.

    Laughable.
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  3. #23  
    Best Bounty Hunter in the Forums fettpett's Avatar
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    "Should I keep back my opinions at such a time, through fear of giving offense, I should consider myself as guilty of treason towards my country, and of an act of disloyalty toward the Majesty of Heaven, which I revere above all earthly kings..." Patrick Henry
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  4. #24  
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    I'm entirely apathetic on Bitcoin. If it works to facilitate ease and privacy of transactions for those using it, Great; I have no personal objection to any particular form of Free Market Money. This particular type of private currency is just one for which I have no personal interest, myself. To each his own.
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  5. #25  
    Senior Member txradioguy's Avatar
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    Quote Originally Posted by OrthodoxPresbyterian View Post
    And, yet again, Captain Irrelevant manages to cut-and-paste a great deal of Economic verbiage which he 1.) Doesn't actually understand; and 2.) Couldn't effectively defend, if his bluff were called.
    I understand it. MOre than you do it seems. If you DID understand it and understand what Dr. Nutz has advocated as "fiscal policy" you'd understand why I continue to post it for you cult followers to read.

    Which it's unnecessary to do, since THIS ARTICLE HAS NOTHING TO DO WITH THE GOLD STANDARD, which neither Dr. North, nor I, support anyway.
    You said:

    However, I do believe that the Gold Standard, if not "the best" monetary system, is certainly preferable to Fiat Money (which is the truly "unworkable" Monetary System, as demonstrated by the fact that EVERY SINGLE Fiat Money ever issued, save for those presently in operation, have always gone to Zero Value -- and at the rate that our world's current Fiat Monies are declining in value, we may reasonably expect them to go to Zero within our lifetimes, also. Gold and Silver, you may be certain, will still retain substantial value).
    And I simply showed you where you were...yet again...completely wrong. And you answered with a bunch of name calling and shit talking as is your wont when you are shown to be wrong on the facts.


    You did not understand this, because you do not understand Economics.
    And you know this how exactly? I mean you prove it every time with the crap you post. You call the Gold Standard "if not "the best" monetary system, is certainly preferable to Fiat Money" and then try to lecture me on my lack of economic knowledge?




    In fact, if you actually thought that this Article had ANYTHING to do with the Gold Standard, to the point of posting an entire screed on the subject, then it's patently obvious that you know ABSOLUTELY NOTHING about Economics, at all.
    I could care less about your Ronulan Propaganda. I'm more interested in 21st century reality and the real world. Not pretend world conducted in a vacuum like you Ronulans pretend we live in.

    I took one point you brought up and showed you where you were wrong.

    Period.

    Laughable.
    Yes...yes you are.
    In Memory Of My Friend 1st Sgt. Tim Millsap A Co, 70th Eng. Bn. 3rd Bde 1st AD...K.I.A. 25 April 2005

    Liberalism Is The Philosophy Of The Stupid

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    The libs/dems of today are the Quislings of former years. The cowards who would vote a fraud into office in exchange for handouts from the devil.
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  6. #26  
    Best Bounty Hunter in the Forums fettpett's Avatar
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    I really don't understand what this "Fiat Money" has to do with anything. Every monetary system (outside of straight barter systems) are fiat as the Government sets the price of what the money is worth, whether it's a metal coin, or paper money. The only difference between our current system and the Gold standard (or Sliver or w/e you want) is that there is no physical metal that backs it.
    "Should I keep back my opinions at such a time, through fear of giving offense, I should consider myself as guilty of treason towards my country, and of an act of disloyalty toward the Majesty of Heaven, which I revere above all earthly kings..." Patrick Henry
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  7. #27  
    Senior Member txradioguy's Avatar
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    Quote Originally Posted by fettpett View Post
    I really don't understand what this "Fiat Money" has to do with anything.
    I hear that term and I think of this:



    Not sure if it's worth any money or how well it works as currency though.
    In Memory Of My Friend 1st Sgt. Tim Millsap A Co, 70th Eng. Bn. 3rd Bde 1st AD...K.I.A. 25 April 2005

    Liberalism Is The Philosophy Of The Stupid

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    The libs/dems of today are the Quislings of former years. The cowards who would vote a fraud into office in exchange for handouts from the devil.
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  8. #28  
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    I understand it. MOre than you do it seems. If you DID understand it and understand what Dr. Nutz has advocated as "fiscal policy" you'd understand why I continue to post it for you cult followers to read.
    Wait a minute -- you actually think that The Gold Standard has anything whatsoever to do with "Fiscal Policy"? Intrinsically?
    :p Oh, that's rich. You really don't know your economics, not one little bit.

    Please, explain precisely what The Gold Standard has to do with FISCAL policy. In your own words, please, no cut-and-paste.

    And I simply showed you where you were...yet again...completely wrong. And you answered with a bunch of name calling and shit talking as is your wont when you are shown to be wrong on the facts. And you know this how exactly? I mean you prove it every time with the crap you post. You call the Gold Standard "if not "the best" monetary system, is certainly preferable to Fiat Money" and then try to lecture me on my lack of economic knowledge?
    Yes. Because you do not even know the difference between The Gold Standard, and Free Market Money.

    That is, in and of itself, a laughable deficiency of economic knowledge.
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  9. #29  
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    Quote Originally Posted by fettpett View Post
    I really don't understand what this "Fiat Money" has to do with anything. Every monetary system (outside of straight barter systems) are fiat as the Government sets the price of what the money is worth, whether it's a metal coin, or paper money. The only difference between our current system and the Gold standard (or Sliver or w/e you want) is that there is no physical metal that backs it.
    The difference is you can print money out of thin air while the same can not be said of gold. There is just so much gold or silver that can be mined while the US printing press has no such limitations. Buy gold and silver. It will be worth more in a few years than the funny money Uncle Ben and tiny Tim keep printing. In the last 10 years, no asset class has come close to the appreciation of gold and silver.
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  10. #30  
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    Quote Originally Posted by fettpett View Post
    I really don't understand what this "Fiat Money" has to do with anything. Every monetary system (outside of straight barter systems) are fiat as the Government sets the price of what the money is worth, whether it's a metal coin, or paper money.
    No, it doesn't. Actually, the practice of the Government setting the price of what the "money" is worth in units of metallic commodities, is a relatively recent economic phenomenon. Money was exchanged for thousands of years without official Government price-fixing of the value thereof. At best, the Governments of ancient and medieval civilizations could attempt to mandate consumer prices in relation to their own devaluation of Money, but were largely unable to affect the Trade Value of the devalued Monies.

    The only difference between our current system and the Gold standard (or Sliver or w/e you want) is that there is no physical metal that backs it.
    True, but that's not at all the same thing as Free Market Money. The truth is, no "Gold Standard" or any other Government-imposed standard is necessary for Money to have value as a medium of exchange. In fact, as Von Mises correctly defined, "Money" is simply the most-broadly exchangeable commodity in whatever economy is under consideration, whether or not its value is set by the government, or Government-mandated to be exchangeable for a fixed amount of precious metal, or not.
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